Industries: Wholesaling and Distribution
Location: Los Angeles, CA
How Much? $500,000
It is an all-too-common problem faced by businesses in the wholesaling and distribution sector: your suppliers demand fast, expedited payment while your clients take their time paying you, about 45-days on average. Unless you have some very deep cash reserves or a rich uncle you can borrow money from when you need to, such a problem, if left unchecked, has the potential to shut down your businesses for good.
Industries: Wholesaling and Distribution
Location: Kansas City, MO
How Much? $100,000
Just In Time P.O. Financing
The vast majority of business sectors in the U.S. have a 30-day payment cycle so when a business mails out the invoice to the client, they have 30-days to remit payment. Unfortunately, not every industry falls into this neat and tidy payment window.
There are a number of pros as well as a few cons to having the federal government as your customer. The big pro of course is that you know the government has money to pay its bills. The con is that the massive-sized federal government is a bureaucracy that can sometimes make collecting what is owed a hassle.
If you are a small business that has recently landed the United States Federal Government as a client, you are probably jumping for joy at the prospect of having a customer with such deep pockets. Yet securing this cash-rich entity as a key client does not necessarily mean a trouble-free account receivable process. As it is in life, even the best circumstances can have an unpleasant underbelly; for instance, consider the lottery winner who still has to pay taxes on his winnings.
The behemoth textile, garment and apparel industry comprises the lion’s share of all factoring receivables across the globe, as much as 59 percent according to a recent report by the Commercial Financing Association (CFA). This stems from a long history entwining accounts receivable factoring, factoring receivables and the garment industry going back thousands of years. Yet those new to the garment industry may not be aware of how large a role factoring apparel industry actually is.
Accounts receivable factoring has a long history financing the apparel industry that goes back thousands and thousands of years. In fact, apparel factoring engendered the birth of invoice factoring as a viable commercial financing option. Textile loans and factoring was necessary for garment production and manufacturing because there was a natural lag from the time when clothing was produced to when it was shipped, stocked and ultimately sold on store shelves.
What is more fundamental to American families than farm-fresh food on the tables? Yet this everyday function is so seemingly ordinary that few people actually sit down and think about all that goes into this laborious process. From the farmer to the workers, and from the seeds to the harvesting equipment, today’s farms are remarkable indeed.
Many small- to medium-sized businesses are not familiar with all the different options that are out there when it comes to getting financing for their company. Because of this, many businesses continue to apply for business loans at traditional corporate banks despite the fact that these banks are no longer lending like they did eight or ten years ago.
It is undeniable that the use of accounts receivable factoring by businesses across the globe and here in the U.S. continues to grow. Part of this can be attributed to the loss of the stigma that was formerly associated with alternative financing as well as banks’ lending less to businesses. One doesn’t have to be clairvoyant to predict that the trend of increase use of business factoring services is likely to continue for the foreseeable future.
Sourcing oil and gas project financing for the newest shale drilling, extraction and production projects remains problematic. The oil and gas companies behind these potentially lucrative fracturing projects often have a hard time obtaining enough cash to purchase or lease all the drilling equipment and pipeline materials they need. The upfront cost of such oil and gas ventures is a serious investment that has proven to be somewhat prohibitive to many.